3 Ways to Reduce Your Business’s Carbon Footprint

Reducing greenhouse gas emissions is an important sustainability initiative for small businesses, not only for the cost-saving benefits, but also for the environmental responsibility aspect.

Because small businesses make up a large part of many communities, they have the potential to make meaningful, positive, and lasting environmental impacts in their respective communities.

Move towards Electric Vehicles

The transportation sector is the largest contributor to greenhouse gas emissions, closely followed by the production of electricity. According to a Science Direct article source, “transportation alone consumes the majority of the US’s imported oil and produces a third of total US greenhouse gas emissions (Morrow et al., 2009). With that being said, small businesses can make a significant impact in reducing GHG emissions by transitioning from gas powered vehicles to electric vehicles (EVs). Although this may be a bit difficult to accomplish at first, making this transition is a considerable step to reduce greenhouse gas emissions. The biggest barrier preventing small business from switching to electric vehicles would be cost. According to a research article that conducted a study analyzing the customer preferences for technological and environmental EV attributes, “the results indicate that the current low acceptance of EVs is due to their relatively high price and lack of a battery charging technology that satisfies consumers' expectations of the charging method and time” (Beak et al., 2020). This is an alternative transportation option that would take a substantial capital investment, but one that would also have vastly positive environmental impacts.

Explore Renewable Energy Sources

A large majority of electricity produced in the United States is generated by burning fossil fuels, and because of this, this sector is the second largest contributor to greenhouse gas emissions. Burning fossil fuels emits a number of harmful greenhouse gas particles, and these gases are not only harmful to the environment, but also to human health. Replacing fossil fuel powered electricity with renewable energy sources is a concrete step that small businesses can take to reduce greenhouse gas emissions. According to the South Bend Climate Action Plan, “across the country, state-based incentives like tax credits, rebates, loan programs, and renewable energy credits have been critical mechanisms for driving early adoption and integration of renewable energy sources in every sector” (South Bend Climate Action Plan, 2019). The most common renewable energy sources are solar and wind, with wind being the most popular. This transition to renewable energy may pose a challenge to small businesses, but there are various incentives to motivate companies to make the switch.

Commercial buildings, where many small businesses are housed in, are also responsible for greenhouse gas emissions. According to a research review on carbon emissions of commercial buildings, “the building sector accounts for one-third of energy-related carbon emissions” (Lu et al., 2020). To reduce emissions, commercial property owners can transition to renewable energy sources. Because the most common source of energy for commercial buildings is purchased electricity, and because the energy demands of buildings are so large, property owners that want to be environmentally responsible and reduce their entity-wide emissions should purchase electricity generated from renewable energy sources. As previously mentioned, there are various incentives to encourage implementation of renewable energy initiatives. The majority of these incentives are government sourced, and on their website the U.S. Energy Information Administration (EIA) lists 4 federal tax incentives for qualifying renewable energy projects; the Renewable Electricity Production Tax Credit, the Investment Tax Credit, the Residential Energy Credit, and the Modified Accelerated Cost-Recovery System (EIA, 2020). In addition to government based incentives, there are also grants available for energy efficiency projects. An example of a grant is the Energy Efficiency and Conservation Block Grant (EECBG), which was established under the Obama administration (USMayors, 2020). This grant is purposed to support energy efficiency projects across various US cities. Converting to renewable energy sources is a good way for small businesses to reduce emissions, and help combat climate change.

Zero-waste

For businesses in the food industry, there is a greater opportunity for greenhouse gas emissions reduction. According to Our World in Data, food is responsible for 26% of global GHG emissions (Our World in Data, 2020). Supply chain emissions - transport, packaging, retail make up a large portion of that percentage, and are the key area that small businesses can contribute to reducing greenhouse gas emissions. Preventing food waste is an easy way for small business in the food industry to reduce emissions, as food waste from production is a major contributor to supply chain emissions. Some suggestions to get started include: Better food processing methods, durable packaging, and more efficient storage and refrigeration systems. In addition, it is important to avoid over-buying stock. It is tempting to stock up, but if the produce is not utilized then it will go to waste. Other tips include; composting food waste, incorporating leftovers into exclusive dishes, and donating leftovers to a local charity.

Everyone has a role to play

Small businesses alone cannot carry the burden of environmental responsibility, because we all have a part to play. With that being said, small business are in a unique position to have lasting environmental impacts and there are various ways to get started. Identifying the areas in need of improvement is the first step to making any progress, and measurement/benchmarking is a practical way to do that. Common major contributors to GHG emissions include; transportation, electricity production, and commercial buildings. By adhering to the suggestions in this paper, small businesses can make concrete progress in emissions reduction.

References:

Beak, Y., Kim, K., Maeng, K., & Cho, Y. (2020, January 10). Is the environment‐friendly factor attractive to customers when purchasing electric vehicles? Evidence from South Korea. Retrieved December 16, 2020, from https://onlinelibrary.wiley.com/doi/abs/10.1002/bse.2412

U.S. Energy Information Administration - EIA - Independent Statistics and Analysis. (n.d.). Retrieved December 16, 2020, from https://www.eia.gov/energyexplained/renewable-sources/incentives.php

Mayors Climate Protection Center. (2020, August 17). Retrieved December 17, 2020, from https://www.usmayors.org/programs/mayors-climate-protection-center/

Morrow, W., Gallagher, K., Collantes, G., & Lee, H. (2009, December 16). Analysis of policies to reduce oil consumption and greenhouse-gas emissions from the US transportation sector. Retrieved December 17, 2020, from https://www.sciencedirect.com/science/article/abs/pii/S0301421509008349?via=ihub

Ritchie, H. (2019, November 16). Food production is responsible for one-quarter of the world's greenhouse gas emissions. Retrieved December 17, 2020, from https://ourworldindata.org/food-ghg-emissions

South Bend Climate Action Plan. Retrieved December 16, 2020 from http://docs.southbendin.gov/WebLink/0/edoc/296977/South%20Bend%20Climate%20Action%20Plan.pdf

Lu, Mengxue & Lai, Joseph. (2020). Review on carbon emissions of commercial buildings. Renewable and Sustainable Energy Reviews. 119. 109545. 10.1016/j.rser.2019.109545.